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XRP ETFs Attract Institutional Attention Amid Bitcoin Outflows

Reported by Intellectia
May 31, 2026· 2 min read
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Key Takeaways
  • • XRP spot ETFs attracted $11.88–$12 million in net inflows on May 29, 2026, contrasting sharply with persistent outflows from bitcoin and ether products, signaling a tactical shift in institutional capital allocation toward alternative crypto assets.
  • • Bitcoin ETFs recorded their 10th consecutive day of outflows, with $125.31 million in net withdrawals on May 29 alone; Blackrock's IBIT led the exodus with $68.20 million in redemptions, while total bitcoin ETF net assets stood at $94.17 billion.
  • • Ether ETFs extended their outflow streak to 14 consecutive trading days, posting $17.91 million in net withdrawals, though selective funds like Fidelity's FETH attracted modest inflows of $10.53 million, indicating bifurcated institutional sentiment.
  • • JPMorgan forecasts XRP ETFs may capture $4–8.4 billion in first-year inflows, positioning XRP as a potential beneficiary of institutional diversification away from dominant bitcoin and ether holdings amid broader market volatility.
  • • Alternative crypto ETFs—including XRP, HYPE, and Solana products—attracted fresh capital during the week of May 29, demonstrating selective risk appetite and a rotation toward diversified crypto exposure despite broader fund pressure.
Summary
The crypto ETF market exhibited a pronounced bifurcation on May 29, 2026, as institutional investors continued liquidating dominant positions in bitcoin and ether while deploying capital into XRP and alternative crypto products. Bitcoin ETFs posted their 10th consecutive outflow day, with net withdrawals of $125.31 million led by significant redemptions from Blackrock's IBIT ($68.20 million) and Fidelity's FBTC ($31.95 million). Grayscale's Bitcoin Mini Trust, Ark & 21Shares' ARKB, Morgan Stanley's MSBT, and Grayscale's GBTC also recorded outflows ranging from $2.85 million to $9.74 million. Despite this pressure, total bitcoin ETF net assets remained substantial at $94.17 billion, with $2.21 billion in total value traded.

Ether ETFs extended losses to a 14th consecutive trading day, posting $17.91 million in net outflows. The category exhibited more granular flows, with some funds attracting modest inflows—Fidelity's FETH added $10.53 million and Blackrock's ETHB brought in $9 million—while others experienced larger redemptions. This mixed picture suggests institutional investors are selectively rotating positions rather than abandoning ether exposure entirely.

In contrast, XRP spot ETFs attracted $11.88–$12 million in net inflows on May 29, alongside positive flows into HYPE and Solana ETFs. This capital rotation reflects a tactical shift toward alternative crypto assets amid broader market volatility. The week totaled $1.42 billion in bitcoin ETF outflows, yet crypto fund flows as a category flipped positive when alternative products are included, indicating that institutional capital is rotating rather than fleeing the crypto space entirely.

JPMorgan's forecast that XRP ETFs may attract $4–8.4 billion in first-year inflows underscores the potential institutional demand for XRP as a diversification tool. Despite XRP's recent 3% price pullback, the asset remains up more than 85% year-to-date and is supported by persistent net exchange outflows, suggesting strong underlying institutional accumulation. The inflow dynamics indicate that investors are reassessing portfolio construction around crypto assets, with selective risk appetite favoring assets outside the bitcoin-ether duopoly.

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Sources

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Intellectia XRP ETFs Attract Institutional Attention Amid Bitcoin Outflows